2022 was a document 12 months for European VC fundraising. VCs raised $28.9bn — greater than even 2021’s determine of $23.1bn, in line with Dealroom. However 2023 is prone to see a a lot smaller determine raised.
The VCs heading out to lift this 12 months gained’t have the best time of it. Ask nearly any investor how fundraising goes, and so they’ll say: “slowly”. Household workplaces are, VCs inform us, investing extra cautiously or under no circumstances. Pension funds and institutional buyers are additionally reducing the share of their capital that they allocate to VC, as a result of tumble tech shares have taken on the general public market.
And but, like many startups, some VCs can have no alternative.
Sifted has checked out which VC companies haven’t raised a brand new fund for at the very least two years — a very good indicator that they’ll be searching for extra capital quickly — and spoken to our sources so as to add additional names to our listing. Until in any other case specified, this data has come from folks with direct data of the fundraising.
Listed here are the VCs we all know plan to lift this 12 months.
Atomico
Goal dimension: Two funds totalling over €1bnFocus: Generalist HQ: London
VC big Atomico raised its fifth, mammoth fund of $820m in February 2020. On the time, it was larger than any fund raised by different European VC heavyweights — however since then, the remaining have caught up. In 2021, Index introduced two funds totalling $2.9bn and final 12 months, Northzone introduced a €1bn fund to again European startups from seed to IPO. So now, Sifted understands, Atomico is out elevating two funds that collectively will probably be even larger.
Since 2020, the agency has had one massive exit (Wolt) — and seen one Nasdaq itemizing (Lilium). But it surely’s additionally seen a number of portfolio corporations take large valuation cuts (Klarna), pull out of markets (Zapp), announce sweeping layoffs (Infarm) and exit of enterprise (Farmdrop).
Adara Ventures
Goal dimension: UndisclosedFocus: DeeptechHQ: Madrid
Spanish VC Adara closed its third fund at €80m in April 2019, with backers together with the EIF and Molten Ventures. It instructed Sifted it additionally raised an alternatives fund on the finish of final 12 months (though it wouldn’t disclose the dimensions), and is now elevating two new funds. Portfolio firm Openbravo was acquired final 12 months.
Ahren
Goal dimension: “Considerably bigger” than the final ($275m)Focus: Deeptech, pre-seed to pre-IPOHQ: Cambridge
Deeptech investor Ahren is near closing its second fund. It is going to be “considerably bigger” than its final, of $275m. Ahren tells Sifted its first fund has carried out nicely, main a few of its greatest LPs to pre-emptively commit 2-4x extra for the second fund. The fund made 14 investments throughout 2022, together with synbio startup Constructive Bio and Phaidra, an power saving management system startup by DeepMind alumni. Different Ahren portfolio corporations embody diet app Zoe and DNA sequencing instrument Cambridge Epigenetix.
Fly
Goal dimension: €70m-80mFocus: Pre-seed and seed, EuropeHQ: Berlin
Sifted hears Fly is elevating its third fund. Its final fund, of €53m, was introduced in June 2020. LPs in that fund embody AXA Enterprise Companions, A number of Capital, EIF and KfW. Portfolio corporations embody Salv, the Estonian monetary crime-catching startup which raised €4m in January, and Wayve, the autonomous car startup, which introduced a technological breakthrough in September.
Frst
Goal dimension: €80m-100mFocus: Pre-seed/seed, FranceHQ: Paris
French seed-stage VC Frst is elevating its second institutional fund, which it hopes to shut in a while this 12 months. Its first, of €90m, was introduced in July 2019. Portfolio corporations embody payroll administration unicorn PayFit, AI unicorn Owkin, electrical car charging startup Electra and enterprise planning platform Pigment.
Frog
Goal dimension: €150mFocus: Software program scaleups HQ: London
Progress fairness investor Frog’s second fund closed at €91m — in need of its said €150m goal. It’s made six investments from that fund thus far, together with Swedish worker engagement platform Winningtemp, German digital remedy startup Caspar and Spanish actual property platform Housfy. It plans to lift a 3rd fund of round €150m this 12 months.
Hummingbird
Goal dimension: UnknownFocus: Generalist, internationalHQ: London
Hummingbird’s fourth fund, of €181m, closed in November 2020. It’s now elevating a brand new one. Its previous three funds, associate Firat Ileri instructed Sifted in March final 12 months, have made 15-30x returns (the trade customary is 1.63x). Its portfolio contains UK supply big Deliveroo and Turkish gaming firm Peak Video games, which made a tidy exit to Zynga in 2020, promoting for $1.8bn. Hummingbird had invested at a $2m valuation.
HV Capital
Goal dimension: UnknownFocus: CommonHQ: Munich
HV is elevating its ninth fund. As soon as most companies have reached that classic, issues are fairly simple — however Sifted has heard that LPs have given HV an ultimatum: rent a feminine associate, or we’re not investing. HV confirmed to Sifted that it has seven male companions and no feminine companions, including that they “imagine it’s only a matter of time earlier than we now have the primary feminine associate at HV”.
The agency introduced its newest flagship fund, of €535m, in October 2020, and a continuation fund of €430m in February 2022 to carry on to its stakes in later-stage corporations for longer. Its portfolio contains spacetech Isar Aerospace, speedy supply startup JOKR and carbon discount software program startup Plan A. It has had a number of exits in recent times, together with Penta and Depop — of which HV Capital was the most important shareholder at exit.
Kindred
Goal dimension: $120mFocus: Pre-seed and seed startups throughout EuropeHQ: London
Kindred is elevating its third fund, which it expects to shut shortly. It accomplished a primary shut in December. LPs within the earlier $100m fund, which was introduced in September 2020, embody the College of Chicago, Business Ventures, Era Ventures, Sands Capital, British Affected person Capital, Isomer and Authorized & Common. Kindred has an uncommon “equitable enterprise” mannequin — it units apart 20% of its carry to allocate to founders in its portfolio.
La Famiglia
Goal dimension: UndisclosedFocus: Early-stage B2B startupsHQ: Berlin
La Famiglia is elevating its third fund, which it expects to shut shortly. Its second, of €50m, was introduced in August 2020. Earlier LPs have included a who’s who of European industrial giants — Mittal, Oetker and Swarovski — together with well-known startup founders like Niklas Zennström, Alex Chesterman and Hanno Renner. La Famiglia is an investor in distant payroll firm Deel, now valued at $12bn.
Notion Capital
Goal dimension: $300mFocus: SaaS and cloud startupsHQ: London
SaaS investor Notion is reportedly elevating its fifth fund. Its fourth, of $150m, was introduced in October 2019. Portfolio corporations embody funds fintech GoCardless, SaaS firm Paddle and recruitment platform Workable.
SET Ventures
Goal dimension: UndisclosedFocus: Startups working in direction of a carbon-free power programs, seed and Collection AHQ: Amsterdam
Dutch VC SET Ventures is within the preliminary phases of elevating its fourth fund. “Making related connections with LPs is simpler nowadays,” the crew tells Sifted. “The house we’re in is just not an afterthought anymore — excited about carbon footprint is embedded in everybody’s thoughts, and that’s not going to go away. Some corporations and a few funds have additionally proved you can make aggressive returns on this sector.” SET’s final fund of €100m was introduced in January 2020.
Singular
Goal dimension: UnknownFocus: UnknownHQ: Paris
Sifted hears that the agency is on the street elevating its second fund. It introduced its first, of €225m, in March 2021. LPs embody Ontario Lecturers’ Pension Plan, Bpifrance, Classic Funding Companions, Axa Enterprise Companions, Sofina, MACSF and Mubadala Capital.
Tiny VC
Goal dimension: UnknownFocus: Pre-seed and seedHQ: Berlin and London
Sifted has heard that Tiny is elevating its third fund. Its portfolio contains British/Bulgarian fintech unicorn Payhawk, Softbank-backed French NFT gaming startup Sorare, autonomous car startup Wayve, authorized assist platform Lawhive and AI video era platform Synthesia.
Voima Ventures
Goal dimension: €80m-120mFocus: Pre-seed and seed, deeptech, Nordics and BalticsHQ: Helsinki
Finnish VC Voima, which introduced its final fund of €50m in April 2019, is hoping to finish a primary shut on its third fund in Q1 this 12 months. Its portfolio contains various protein startup Photo voltaic Meals, robotics firm The Human Contact Robotics and quantum laptop “tuning” software program startup QuantrolOx.
Xange
Goal dimension: UnknownFocus: Web3, seedHQ: Paris and Berlin
Xange, which has been round for nearly twenty years, is elevating an early-stage seed fund to spend money on Web3 startups. It raised its final generalist fund of €220m in 2022 — its fourth. Portfolio corporations embody speedy grocery startup Flink, open banking platform Deposit Options and Ledger, a {hardware} pockets for crypto belongings.
Others to control
Right here’s a listing of some extra VC companies that haven’t introduced a fund since 2021 and are due to this fact prone to be out elevating quickly.
Amy Lewin is Sifted’s editor and cohost of Startup Europe — The Sifted Podcast, and writes Up Spherical, a weekly e-newsletter on VC. She tweets from @amyrlewin
